Avoiding fraudsters

I have read reports in the press as well as heard about how investors get cheated by third-party distributors. Can you please throw some light on this issue by explaining how it happens? If I invest via a distributor, what must I do to protect myself? If I get cheated, will the fund house return my money? - Jogender Yadav Frankly, I am not sure how rampant this practice is. But there is no ignoring the fact that it does take place. Let me start by explaining how the regular process works. Let's say you approach a distributor to invest in a mutual fund scheme. You submit the application form with a cheque in favour of the scheme to the distributor. He then submits it to the mutual fund and you get your units allotted. This is how the regular process is carried out. Now the problem takes place if instead of submitting the a

This article was originally published on September 09, 2010.